🕒 Last updated on June 27, 2025
Xiaomi Enters the EV Race With a Bang
Xiaomi, a well-known smartphone brand, has now stepped boldly into the electric vehicle (EV) world. On Thursday, it launched its second electric SUV, the YU7, in a highly competitive market. The starting price of the car is 253,500 yuan, or roughly $35,322 USD.
Compared to Tesla’s Model Y, which starts at 263,500 yuan, this pricing is 4% less. By offering a lower price, Xiaomi is clearly targeting buyers who want a powerful EV but at a slightly better deal.
After the launch event, Xiaomi opened bookings and will deliver the first units as early as next week. This launch was earlier than planned. Originally, Xiaomi planned to start sales in July. However, due to strong interest, it moved the release to the end of June.
Following the success of Xiaomi’s debut vehicle, the SU7 sedan, comes the YU7. Tesla, more especially the Model 3, was also the aim of such a model. During the first month following its availability, Xiaomi received over 70,000 orders for the SU7.
YU7 Offers Impressive Range and Features
The YU7 is not just about price. It comes packed with smart features that aim to stand out. One major highlight is its driving range of 835 kilometers on a single charge. In comparison, the Model Y built in Shanghai has a range of 593 kilometers.
The new SUV also includes an early self-driving system, a large multimedia display, and a high-performance battery. These features are designed to attract tech-savvy buyers who expect more from their EVs.
Xiaomi has said that demand for the YU7 has already exceeded the early interest seen for its first car. That signals growing trust in Xiaomi as a serious player in the EV world.
Despite Xiaomi’s bold steps, only a few EV makers in China have actually made profits so far. This includes big names like BYD and Li Auto. Although Xiaomi’s EV division is still striving for profitability, it is still in the market thanks to strong support and rising demand.
Tesla Still Leads, But Market Pressure Grows
Tesla’s Model Y is still the best-selling SUV in China. In fact, it outsold every other SUV—electric or petrol—in 2024. Last year, almost 480,000 Model Ys were sold nationwide.
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But the competition for Tesla is more fierce than it has ever been. Companies like BYD, Huawei-backed Aito, and now Xiaomi are all releasing new models. Many of these come with better features and more attractive prices.
As new models enter the market, more buyers are willing to switch brands. That’s why companies are fighting hard to win attention with each launch. In such a tough space, even top names struggle to keep profits high.
Market Becomes More Crowded With New EV Launches
China has over 50 electric car brands, but only a few are seeing strong financial results. BYD is still the biggest producer of electric vehicles worldwide. Between January and May of this year, it manufactured 1.76 million cars. That is a 39% increase over the previous year. It also shipped 373,000 cars outside China, a 112% increase.
There were recent rumors that BYD had slowed production. But reports later said that BYD’s factories are running normally and that the company’s stock levels are healthy.
Experts say that top players and fast-moving brands are likely to take a larger share of the market. As discounts and new launches continue, buyers have more choices than ever.
Xiaomi’s move to launch the YU7 at a competitive price puts it in the spotlight. The company has captured attention by daring to go up against Tesla’s top-selling car.